borrower has a 30-years mortgage loan for $400,000 with an interest rate of 6% and payments. If she wants to pay the loan after 8 years, what would the outstanding balance of the loan?

Q: Suppose Allison purchases a condominium and secures a loan of $134,000 for 30 years at an annual…

A: Loan amount (X) = $134000 Number of payments (n) = 30 * 12 = 360 r = 6.5% per annum = 0.54167% per…

Q: You can afford a $1050 per month mortgage payment. You've found a 30 year loan at 8% interest. a)…

A: a.

Q: (a) What is Diane's current monthly mortgage payment? $ (b) What is Diane's current outstanding…

A: Mortgage loan is considered to be one of the secured loan that is used to borrow required amount by…

Q: When you purchased your house, you took out a 30-year mortgage with an interest rate of 4.8% per…

A: Payoff amount refers to the amount which is required to be paid as principal amount of the loan. The…

Q: You are considering purchasing a new home. You will need to borrow AED 4,000,000 to purchase the…

A: Monthly Payment refers to the payment that is to be paid monthly for a specific period of time to…

Q: You take out a 30-year $100,000 mortgage loan with an APR of 6% and monthly payments. In 12 years…

A: Principal balance Amount outstanding and owing for satisfying the payoff the amount of an underlying…

Q: You take out a 20-year $260,000 mortgage loan with an APR of 9% and monthly payments. In 14 years…

A: Principal BalanceThe principal balance, in case of a mortgage loan is the amount due to pay for an…

Q: A family has taken a mortgage loan of 1,000,000 AED. They are required to pay 100,000 at the end of…

A: STEP 1 YTM Yield to maturity is the overall rate of return that a bond will have earned once all…

Q: Suppose you had to choose between a 9% 25-year mortgage or a 8.5% mortgage with 2 discount points.…

A: The discount points in mortgages are the points that can classify into borrower and lender points.…

Q: A bank offers a home buyer a 20 year mortgage at 6% per year. if the home buyer borrows $200,000…

A: Present Value of annuity refers to the present value of all the future payments of and series of…

Q: You buy a house for $1,200,000 using a 30-year mortgage.  The annual interest rate is 3%.  Payments…

A: Using excel PV function

Q: A couple take a 30-year home mortgage of $120,000 at 7.8% compounded monthly. They make their…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: Suppose you have good credit and can get a 30 year mortgage for $100,000 at 5%.  What is your…

A: Amount of Mortgage (pv) = $100,000Time Period = 30 yearsNumber of Payments in a Period = 12Total…

Q: 19. You borrow $1,500,000 to purchase a small apartment building. The lender charges you a 2%…

A: Present value of annuity Annuity is a series of equal payment at equal interval. With annuity (PMT),…

Q: If a person has taken a home loan of 50000 TL with an annual effective interest rate of 12% and his…

A: A home loan is taken in order to finance the purchase of a house. The borrower makes regular…

Q: You can afford a $1350 per month mortgage payment. You've found a 30 year loan at 8% interest.a) How…

A: Part a-c:Calculation of Size of Loan, Total Money to be Paid and Total Interest:a) The size of loan…

Q: Siuppose you have 20 year mortgage with weekly payments of $332. What is the total amount of money…

A: Total amount of money to be paid towards  mortgage = amount of weekly payment × number of weeks in a…

Q: After making payments of $901.10 for 6 years on your 30-year loan at 8.9%, you decide to sell your…

A: Monthly payment (C) = $901.10 Monthly interest rate (r) = 0.00741666666666667 (i.e. 0.089 / 12)…

Q: A couple requires a mortgage loan of $182,000. They figure they can afford $1400 a month. If they…

A: A mortgage refers to a covered loan that is taken out for the purchase of a property which itself…

Q: A borrower has secured a 30 year, $131.000 loan at 8% with monthly payments. Fifteen years later,…

A: Loan Amount = $131,000 Time period = 30 Years  Interest rate = 8%

Q: When you purchased your house, you took out a 30-year mortgage with an interest rate of 4.8% per…

A: The entire amount needed to fully satisfy a debt or other financial obligation is called the payoff…

Q: ava wants to take a loan out a 23,500 loan with a 4.3% APR. can she afford to pay 220 per month for…

A: A sum borrowed to meet specific personal or business requirements is recognized as a loan. The loan…

Q: 6. Smith is willing to spend $2,000 per month on her mortgage payment. If Smith obtains a fully…

A: An agreement through which a lender lends the money to the borrower, and has the right to take the…

Q: Rose believes that she can afford a monthly mortgage payment of $1,450.00. At a mortgage rate of…

A: > Given data: > The monthly payment is 1000 and the rate is 4.9% > The period = 25 years…

Q: A woman buys a house for $325,000. She pays $20,000 down and takes out a mortgage at 6.9% on the…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: You purchase a home for $400,000 and make a down payment of $125,000. The balance is borrowed and…

A: Using excel PMT function

Q: You want to take a $172260 mortgage at j2 = 11.59 % and can afford topay up to $5030 per quartely.…

A: Quarterly Payment = $5030 Amount of Mortgage = $172260 Interest Rate per annum = 11.59% Interest…

Q: You take out a 20-year $280,000 mortgage loan with an APR of 6% and monthly payments. In 16 years…

A: Loan amount = $ 280,000 Annual interest rate = 6% Monthly rate = 6%/12 = 0.50% Loan period = 20…

Q: Beatrice takes out a 7 year loan of $5000. The interest rate is 4.5%. What are Beatrice's monthly…

A: In order to find the monthly payment one can use excel and in excel use PMT function.

Q: Suppose that you purchased a house with a $140,000 mortgage (30-year fixed at 6% with a payment of…

A: Refinancing refers to the change in financing conditions after the loan is carried for some tenure.…

Q: You have just purchased a home and taken out a $460,000 mortgage. The mortgage has a 30​-year term…

A: We buy expensive or large ticket items like a home by taking a bank loan. The loan is repaid through…

Q: A couple borrows 275000.00 for a mortgage that requires fixed monthly payments over 25 consecutive…

A: Solution:-When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: Sue borrows $600,000 at 3.85%. The mortgage is for 30 years. A. What is the monthly payment? B. How…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: You have just purchased a home and taken out a $420,000 mortgage. The mortgage has a 30-year term…

A: MortgageA mortgage is a legal agreement in which a person borrows money from a financial institution…

Q: Cornelia will borrow $300,000 from the bank as a mortgage on her new home. The posted rate is an APR…

A: APR or annual percentage rate is the interest rate per year without taking into the compounding…

Q: 17) You want to buy a house and will need to borrow $215,000. The interest rate on your loan is 5.41…

A: Compound = Monthly = 12Present Value = pv = $215,000Interest Rate = r = 5.41 / 12%Time = t = 30 * 12…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.